Since 1994, Rwanda has made progress in restoring peace and security, fostering national reconciliation, establishing the foundations for democracy and reforming its institutions. However, dominated by agriculture, the economy lacks diversification. Annual growth rates are particularly vulnerable to changing weather patterns and fluctuating commodity prices.
As a landlocked country, Rwanda’s export potential is restricted and is dependent on aid to deal with its balance of payments deficit and finance much-needed investment. EU cooperation is improving pro-poor services, and is assisting national reconciliation and rural economic development.
The Country Strategy Paper for Rwanda (2008-13) and a multi-annual indicative programme detail the areas for €294.4 million of assistance under the 10th European Development Fund (EDF). After the Mid Term Review, the programme was increased by 88 additional million.
Funding is being channelled to:
- basic services,
- pro-poor growth,
- rural economic development and
- national reconciliation and justice.
General budget support is improving basic services, particularly in education, health and water. Rural development – improved food security and agricultural productivity – and infrastructure are financed via EU sector budget support and through individual programmes.
EU support is also available to strengthen good governance and the rule of law, improve economic and financial management, boost trade and regional integration and develop the private sector.